Regulator warns public against investing in Cebu-based Planetbiz

THE Securities and Exchange Commission (SEC) has advised the public against putting their money in Planetbiz International, Inc., saying the Cebu-based company is not authorized to solicit investments.

In an advisory posted on its Web site, the SEC said that although the company has been a duly registered corporation since 2008, it does not have the necessary permits allowing it to solicit funds, as per the Securities Regulation Code.

The country’s corporate regulator said it has received reports that Planetbiz, through its division Planet Mobile, has been recruiting members who have to pay an initial investment of P3,888, and P8,490 as a lifetime membership fee.

In exchange for the fee, the company will give each member a personal virtual office, worth P2,640, a Schneider Discount Voucher worth P2,100, and 15 Mobile Consumer Privilege cards worth P250 each.

“In view thereof, the public is hereby advised to exercise self- restraint and caution or more prudently to stop investing their money into such investment activity and to take the necessary precautions in dealing with the above- named entity and/ or its representatives,” the SEC said.

Planet Mobile describes itself as an e-marketing firm that “distributes telecommunication services and world-class branded consumer products via social marketing strategy supported by advanced Internet distribution system,” according to its Web site.

Planetbiz also claims investors may earn income in several ways, including recruiting new members into the company.

“Hence it seems that most of the company’s revenue come from the effort of the people to invite prospective members to a common enterprise and not primarily through direct selling of the company’s products,” the SEC said.

The commission also described Planetbiz’s investment structure to the binary marketing system, which it noted is “a typical type of pyramiding scheme.”

“Therefore, based on the alleged practice of the company, it is adopting a combination of both pyramiding scheme and illegal investment contract/undertaking,” the SEC said.

The SEC further emphasized that people affiliated with such schemes may be held criminally liable, sanctioned, or penalized.

The commission has recently cracked down on investment schemes that it deems illegal in an effort to protect the interests of the investing public. It has also advised the public against investing in Pluggle, Inc., Bullion Buyer Ltd., and Alifelong Marketing and Services, Inc., among others.